What is it
EDI (short for Electronic Data Interchange) is a high-level concept and family of standards for exchanging information between enterprise IT systems.
EDI standards serve the needs of the entire enterprise concerning data interchange, but the two most commonly used EDI standards are X12 and EDIFACT. Whereas X12 is dominant on the US market, EDIFACT is more widely used on the European one.
When to use it
Use EDI when it provides the net simplest way of integrating with external enterprise IT systems, such as Transport Management (TMS) systems.